Gold Road ceases to be a substantial shareholder of Cygnus Gold due to dilution

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   Gold Road Resources (ASX: GOR)

Has ceased to be a major shareholder in Cygnus Gold (ASX: CY5), after the recent placement of 18 million shares in CY5 diluted GOR’s holding to below 5%.

In October 2017, Gold Road entered into an earn‐in joint venture with Cygnus Gold Ltd.

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Cabral Gold

 

Comment

I have advocated for a long time that mid tier gold producers should partner with junior explorers to assist them with new projects, putting themselves in the driving seat if a major discovery is made.

The partnership here is a perfect example of  a gold producer partnering with an exploration company, and given Gold Road’s treasury, I have to admit to being disappointed they have been diluted down instead of participating to maintain their position.

 

Gold Road Resources (ASX: GOR)

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Has ceased to be a major shareholder in Cygnus Gold (ASX: CY5), after the recent placement of 18 million shares in CY5 diluted GOR’s holding to below 5%.

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In October 2017, Gold Road entered into an earn‐in joint venture with Cygnus Gold Ltd. to initiate greenfields exploration in a new region of Western Australia. The Lake Grace JV and Yandina JV exploration projects, covering an area of approximately 3,400 km², area in the underexplored south‐west Yilgarn of Western Australia.

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Cygnus South West Yilgarn Projects

  • Underexplored Greenstone belt
    High-grade metamorphic terranes are yielding +Moz discoveries globally
    Targeting crustal scale shear zones

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2020 Activity

  • Commenced 20,000m aircore drilling program
    Gold Road to become operator in April 2020
    Target Hammerhead Geochemical anomaly
    Continue regional exploration

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Lake Grace JV (51%)

A$3M to earn 75% (3 years)

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Disclosure: I am long GOR

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